UK Government to Impose £5 Stake Limit on Online Slot Machines and £100m Gambling Levy

UK Government to Impose £5 Stake Limit on Online Slot Machines and £100m Gambling Levy

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In a significant move to tackle the growing issue of problem gambling, the UK government is set to introduce a new statutory levy, which will generate approximately £100m annually to fund research, prevention, and treatment of gambling-related harms.

The Department for Culture, Media and Sport has confirmed plans to implement the levy, alongside a new limit on online casino customers’ stakes on slot machines, in a bid to reduce the risk of harm associated with excessive gambling.

Under the new rules, stakes on slot machines will be capped at £5 per spin for customers aged 25 and above, and £2 for those between 18 and 24 years old, marking a significant reduction from the current unlimited stakes.

Gambling Minister Baroness Twycross emphasized the government’s commitment to addressing the issue, stating, “Gambling harm can have devastating consequences, ruining people’s finances, relationships, and ultimately, lives. We are dedicated to implementing strengthened measures to protect those at risk and providing effective support for those affected.”

The Betting and Gaming Council (BGC) has expressed concerns that the government’s approach may be overly restrictive, citing a 2021 NHS survey that found only 0.4% of the population have a gambling problem, although a more recent estimate from the Gambling Commission suggests a higher prevalence of 2.5%.

BGC Chief Executive Grainne Hurst, a former Ladbrokes executive and aide to ex-Tory MP Philip Davies, argued that the government’s tone suggests a lack of perspective on the issue, and that the measures may be driven by anti-gambling prohibitionists, rather than a balanced approach.

The statutory levy will replace the current voluntary system, under which gambling firms decide their level of contribution, with the charity GambleAware currently receiving the majority of industry funding, totaling £49.5m last year.

The new levy will be set at a range of 0.1% to 1.1% of revenue, with online businesses expected to pay the higher rate due to their lower costs, and the funds will be allocated to the NHS, prevention initiatives, and research projects.

Both the levy and the slots limit are expected to come into effect next year, with online casinos given a grace period to implement the stake cap, marking a significant shift in the UK’s approach to regulating the gambling industry.

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